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TRUSTEE ACT (NORTHERN IRELAND) 1958 - SECT 32

32.(1) Where any property is held by trustees in trust for any person for any
estate or interest whatsoever, whether vested or contingent, then, subject to
any prior estates or interests or charges affecting that property

(a) during the infancy of any such person, if his estate or interest so long
continues, the trustees may, at their sole discretion, pay to his parent or
guardian, if any, or otherwise apply for or towards his maintenance,
education, or benefit, the whole or such part, if any, of the income of that
property as may, in all the circumstances be reasonable, whether or not there
is

(i)any other fund applicable to the same purpose; or

(ii)any person bound by law to provide for his maintenance or education; and

(b)if such person on attaining the age of [eighteen] years has not a vested
estate or interest in such income, the trustees shall thenceforth pay the
income of that property and of any accretion thereto under sub-section (3) to
him, until he either attains a vested estate or interest therein or dies, or
until failure of his estate or interest.

(2) In deciding whether the whole or any part of the income of the property is
during a minority to be paid or applied for the purposes aforesaid, the
trustees shall have regard to the age of the infant and his requirements and
generally to the circumstances of the case, and in particular to what other
income, if any, is applicable for the same purposes; and where trustees have
notice that the income of more than one fund is applicable for those purposes,
then, so far as practicable, unless the entire income of the funds is paid or
applied as aforesaid or the court otherwise directs, a proportionate part only
of the income of each fund shall be so paid or applied.

(3) During the infancy of any such person, if his estate or interest so long
continues, the trustees shall accumulate all the residue of that income in the
way of compound interest by investing the same and the resulting income
thereof from time to time in authorised investments, and shall hold those
accumulations as follows:

(a)if any such person

(i)attains the age of [eighteen] years, or marries under that age, and his
estate or interest in such income during his infancy or until his marriage is
a vested estate or interest; or

(ii)on attaining the age of [eighteen] years or on marriage under that age
becomes entitled to the property from which such income arose in fee simple,
or absolutely, or for an entailed estate or interest;

(b)in any other case the trustees shall, notwithstanding that such person had
a vested estate or interest in such income, hold the accumulations as an
accretion to the capital of the property from which such accumulations arose,
and as one fund with such capital for all purposes, and so that, if such
property is settled land, such accumulations shall be held upon the same
trusts as if the same were capital money arising therefrom;

(4) This section applies in the case of a contingent estate or interest only
if the limitation or trust carries the intermediate income of the property,
but it applies to a future or contingent legacy by the parent of, or a person
standing in loco parentis to, the legatee, if and for such period as, under
the general law, the legacy carries interest for the maintenance of the
legatee, and in any such case as last aforesaid the rate of interest shall (if
the income available is sufficient, and subject to any rules of court or
county court rules to the contrary) be five pounds per centum per annum.

(5) This section applies to a vested annuity in like manner as if the annuity
were the income of property held by trustees in trust to pay the income
thereof to the annuitant for the same period for which the annuity is payable,
save that in any case accumulations made during the infancy of the annuitant
shall be held in trust for the annuitant or his personal representatives
absolutely.

(6) This section does not apply where the instrument, if any, under which the
interest arises came into operation before the commencement of this Act.

© 1958 Crown Copyright

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